MANUFACTURING ACCOUNT CLASSWORK The following the trial balance of maturing December 2008 Raw material se de Direct Wipes Purchases Acum dep Admin Acord precarie General office Narative salaries Sales reparo Sales reps.com Rent Bank Carriage was Sales Cash at Bank Cahill Thamings Notes at 31 December 2012 Invoy Romania - NOU WIP-15.000 and Seeds Lighting, read insurance are to be apported the function in the 21 Acord de la 2000 Prepaid Provision Se Double det to be of Accountries Depreciation cent and Machinery is 10. permint ic.co i. Prepare the matering, trading and protect the period Ehtively distinguish the feeling my that of a trading svay Deces with completo ents of a manufacturing company one you leeded mandal MANUFACTURING ACCOUNT CLASSWORK Question One The following is the trial balance of Limako Lud, a manufacturing outfit, on 31. December, 2019: Inventory (1/1/19) Raw material 21,000 Work-in-progress 13.500 Finished goods 32.900 Direct Wages 35,000 Purchase of raw materials 370.000 Carriage inwards 10,500 Plant and Machinery 250,000 Accumulated depreciation 25,000 Admin Office Equipment 40,000 Accumulated Depreciation 8,000 General office expenses 31,000 Lighting 7,500 Administrative salaries 44,000 Sales reps. salaries 30,000 Sales reps. commission 11,500 Rent 72.000 Insurance 12.200 Bank charges Discount allowed 4.800 Carriage outwards 5.900 Sales 750,000 Accounts Receivables 142,300 Accounts payables 125,000 Cash at Bank 56.800 Cash in Hand 11,500 Drawings 20,000 Capital 316 200 L.224,700 L.224.200 Notes at 31 December 2019 2.300 Inventory: Raw material - N24,000; WIP - 15.000 and finished good - N40,000 Lighting, rent and insurance are to be apportioned between the factory and administration in the ratio 2:1 Accrued administrative salaries was N2000 Prepaid insurance amounted to N3,200 Provision for Doubtful debt to be 5% of Accounts receivables Depreciation on Plant and Machinery is 10% per annum cn cost, while Office equipment is 20% on cost Required: i. Prepare the manufacturing, trading, and profit or loss accounts as at end of the period and ii. A statement of financial position as at 31st December 2019. (Show all workings) Question Two i. Exhaustively distinguish between the final accounts of a manufacturing company from that of a trading company ii. Discuss with an illustrative example how common expenses are treated in the final accounts of a manufacturing company (ensure you also include the treatment of propayments and accruals) The following is the trial balance of Limako Ltd, a manufacturing outfit, on 31 December, 2019: Inventory (1/1/19): Raw material 21,000 Work-in-progress 13.500 Finished goods 32,900 Direct Wages 35,000 Purchase of raw materials 370,000 Carriage inwards 10,500 Plant and Machinery 250,000 Accumulated depreciation 25,000 Admin Office Equipment 40,000 Accumulated Depreciation 8.000 General office expenses 31,000 Lighting 7.500 Administrative salaries 44,000 Sales reps. salaries 30,000 Sales reps. commission 11,500 Rent 72,000 Insurance 12,200 Bank charges 2.300 Discount allowed 4,800 Carriage outwards 5.900 Sales 750,000 Accounts Receivables 142,300 Accounts payables 125,000 Cash at Bank 56,800 Cash in Hand 11,500 Drawings 20.000 Capital 316.700 1.224,700 1.224.700 Notes at 31 December 2019: Inventory: Raw material - N24,000; WIP - 15,000 and finished good - N40,000 Lighting, rent and insurance are to be apportioned between the factory and administration in the ratio 2:1 Accrued administrative salaries was N2000 Prepaid insurance amounted to N3,200 Provision for Doubtful debt to be 5% of Accounts receivables Depreciation on Plant and Machinery is 10% per annum on cost, while Office equipment is 20% on cost. Required: i. Prepare the manufacturing, trading, and profit or loss accounts as at end of the period and ii. A statement of financial position as at 31st December 2019. (Show all workings)
